Washington/ Tehran, Jun 8 (UNI): After reports emerged that the US Treasury Department is considering a plan to redirect frozen Iranian assets toward compensating American-aligned Gulf states for damage linked to Iranian military actions during the ongoing conflict, Iran dismissed the proposal as “absurd” and “ridiculous.”
Foreign Ministry spokesman Esmaeil Baghaei, quoted by Iranian media, rejected claims that Washington is considering using Iran’s blocked funds for reconstruction or compensation in Gulf states affected by regional conflict.
He said Iran would instead pursue its own claims against all parties it holds responsible for actions against the country.
He pointed out that countries hosting US military bases used to conduct attacks on Iran could provide Tehran with grounds to seek compensation for damages.
“It is a ridiculous claim,” Baghaei said, arguing that Iran itself has “substantial claims” against regional actors it accuses of involvement in what it describes as crimes committed against Iran.
He added that the return of frozen Iranian assets remains a central condition in any ongoing negotiations, stressing that Tehran “has never intended to show any leniency” on the issue.
With the negotiations for the peace deal progresses, Iran has repeatedly demanded the release of its overseas funds and has also called for compensation for war-related damage it attributes to the United States and Israel.
Iranian officials have expanded these demands to include Gulf states that host American military bases, arguing they may also bear responsibility depending on their role in regional operations.
Some media reports cited unnamed U.S. officials suggesting that the Treasury Department has examined options for using frozen Iranian assets in ways that could support reconstruction efforts in Gulf countries or compensate for damage linked to Iranian military activity.
The reported proposals include reviewing legal pathways to redirect Iranian state funds currently held in foreign accounts or tied up in international financial systems.
Iranian officials, however, say such moves would undermine already fragile diplomatic efforts.
Iranian officials in Tehran have framed the release of frozen assets as a key “test of trust” in any negotiation process, while also insisting that a significant portion of Iran’s overseas funds should be unfrozen at the outset of the phase I of the memorandum of understanding.
Tehran has also appealed to international institutions to intervene more actively, warning that escalating financial and military tensions could further destabilise the region and derail the diplomatic process between Iran and the United States.
